As a result of a multitude of developments and events, such as globalization, new product development, mergers and acquisitions, and congestion, the performance of logistics networks is under pressure. The location of logistics facilities, inter-connections, and performances have to be constantly reviewed. The first step in our approach is to assess the actual need for change. Are there any crucial changes, internal and external, which require that the network structure should be re-addressed?
Optimization tools have gained immensely in computing power over the last years. Today we are able to design network structures to a level of detail that we could not dream of five years ago. But more detail is not always better. Although it increases the possibilities of supply chain analytics, interpretation of data requires new skills.
In our field it is important to have knowledge about all available techniques, tools and instruments. But a good sense of the logistics industry is just as important. Over the past years we have conducted network optimization projects in a broad range of industries. The combination of practical knowledge and powerful modeling capability unlocks great value for our customers.
At the beginning of each project, together with our clients we develop and define a range of relevant scenarios. Once the scenario’s are clear, the next step is to describe and model the current situation in detail. Once the model is truly a reliable representation of reality in terms of all the KPIs that are important to the client, we can look at the different ‘what if’ options: What if we take a greenfield perspective? What if we change the service offering to our customers? What if the volumes to the Eastern-European market grow by x%? What if fuel prices increase by y%? What if the most important port of entry is blocked? Etc.
One of the unique capabilities we have at Argusi is that we collect accurate and real transport rates in our benchmarking databases. This information is valuable input to be able to design a logistic network, based on actual rates and performance of carriers.